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HIGH COURT OF CHHATTISGARH
Hon'ble Shri Justice Arvind Singh Chandel
SHIV BHAGWAN RAMESHWAR LAL CHARITABLE TRUST – Appellant
Versus
STATE OF CHHATTISGARH – Respondent
WPC/3633/2021
The Registrar of Public Trusts cannot refuse sanction for the sale of trust property unless such transaction is prejudicial to the interests of the public trust.
Headnote:
PUBLIC TRUST - SALE OF PROPERTY - CONSENT OF REGISTRAR - [Section 14 of the Chhattisgarh Public Trusts Act, 1951]The Registrar of Public Trusts cannot refuse sanction for the sale of trust property unless such transaction is prejudicial to the interests of the public trust.
Fact of the Case:
The Petitioner, a charitable trust, sought permission from the Registrar of Public Trusts to sell a piece of land owned by the trust. The Registrar rejected the application on the ground that the land was being used as a playground by a college for the last 45-50 years and no useful purpose would be served by selling it.The Petitioner challenged the Registrar's order, arguing that the Registrar had no discretion to refuse sanction unless the sale was prejudicial to the interests of the trust and that the Registrar had not established that the sale would be prejudicial.
Finding of the Court:
The Court held that the Registrar's order was not sustainable. The Court found that the trust deed empowered the trustees to sell the trust properties for fulfilling the object of the trust, and that the application for sale of the land clearly reflected the object of the sale, which was to purchase 10 acres of land in a rural area for the construction of a school, college, and hospital.The Court further held that the Registrar had not established that the sale of the land would be prejudicial to the interests of the trust. The Court noted that the land was not being used by the college for any academic purpose, and that the trust had not received any income from the land for several years.
Issues: 1. Whether the Registrar of Public Trusts can refuse sanction for the sale of trust property unless such transaction is prejudicial to the interests of the public trust?2. Whether the Registrar had established that the sale of the land would be prejudicial to the interests of the trust?
Ratio Decidendi: The Court relied on the provisions of Section 14 of the Chhattisgarh Public Trusts Act, 1951, which states that the Registrar shall not refuse sanction for the sale of trust property unless such transaction is prejudicial to the interests of the public trust.The Court also relied on the decision of the Supreme Court in Parsi Zoroastrian Anjuman, Mhow Vs. Sub Divisional Officer/The Registrar of Public Trusts, 2022 SCC OnLine SC 104, which held that the Registrar's discretion to refuse sanction is limited to cases where the sale would be prejudicial to the interests of the trust.
Final Decision: The Court set aside the Registrar's order and allowed the Petitioner's writ petition, directing the Registrar to facilitate the sale of the land subject to certain conditions.
AFR HIGH COURT OF CHHATTISGARH, BILASPUR Writ Petition (C) No.3633 of 2021 Order Reserved on 11/11/2022 Order Passed on 06/01/2023
1. Shiv Bhagwan Rameshwar Lal Charitable Trust, through its Trustee Shri Kamal Bajaj, son of Late Ramniwas Bajaj, R/o Bajaj Bhawan, Marwadi Line, Lajpat Rai Nagar, Khaparganj, Bilaspur, Tahsil and District Bilaspur (C.G.)
2. Chirag Bajaj, S/o Shri Kamal Bajaj, aged about 33 years, R/o Bajaj Bhawan, Marwadi Line, Lajpat Rai Nagar, Khaparganj, Bilaspur, Tahsil and District Bilaspur (C.G.)
3. Ananya Bajaj, S/o Shri Govind Bajaj, aged about 32 years, R/o Bajaj Bhawan, Marwadi Line, Lajpat Rai Nagar, Khaparganj, Bilaspur, Tahsil and District Bilaspur (C.G.)
---- Petitioners Versus
1. State of Chhattisgarh, through Collector Bilaspur, Chhattisgarh.
2. The Registrar, Public Trust-cum- Sub Divisional Officer (Revenue), Bilaspur.
3. Atul Bajaj, S/o Late Shankar Lal Bajaj, R/o Khaparganj, Bilaspur Chhattisgarh.
4. Santosh Bajaj, S/o Late Amolakchand Bajaj, R/o Ainthapali Chowk, Sambalpur Odhisha.
5. Amit Bajaj, S/o Late Chandrakumar Bajaj, R/o 148, New Ramdaspeth, Nagpur-10 (Maharashtra)
6. Sunit Bajaj, S/o Late Sharad Kumar Bajaj, R/o House No. 301, Krishna Kiran Apartment, Vardhman Nagar, Nagpur (Maharashtra).
---- Respondents For Petitioners : Mr. B.P.Sharma, Ms. Anuja Sharma, Ms. Sameeksha Gupta and Mr. M.L. Sakat, Advocates.
For State/Respondents No.1 & 2 : Mr. Avinash K. Mishra, Government Advocate.
For Respondents No.3 to 6 : Mr. Anurag Dayal Shrivastava, Advocate.
Hon'ble Shri Justice Arvind Singh Chandel
CAV ORDER
1. The instant petition has been preferred by the Petitioners under Article 226/227 of the Constitution of India seeking the following reliefs:
1.1 A writ and/or an order in the nature of writ of mandamus do issue calling for the records pertaining to the case of the Petitioners from the Respondents for its kind perusal.
1.2 A writ and/or an order in the nature of writ of certiorari do issue quashing the order dated 05.08.2021 passed by Respondent Registrar and in effect allow the application of Petitioners filed under Section 14 of the Act of 1951.
1.3 Cost of the proceedings.
1.4 Any other writs and directions that may be deemed fit and just in the facts and circumstances of the case.
2. According to the pleadings of the Petitioners, Petitioner No.1 is a Charitable Trust and is the owner of land bearing Khasra No.107/3 & 108/3 area 0.40 & 0.922 hectares, total area 0.962 hectares, situated at adjacent to J.P.Verma College, Jarhabhata, Bilaspur. The said land is situated on main road and because of its location and recent construction of over bridge etc./widening of road, the boundary wall protecting the said property has been demolished and certain part of the said property is exposed to public. The said property during last several years has not fetched any income which otherwise would have been fetched, therefore, Petitioner No.1-trust has taken a decision on 20.06.2019 of selling the said property and on receipt of consideration, to purchase property in any rural area prospectively around 10 acres so that arrangement may be made for education and health of weaker section of society and also to construct school, college and hospital. Taking into consideration the above aspects of matter and other relevant aspects, an application under Section 14 of the Chhattisgarh Public Trusts Act, 1951 (for short 'the Act of 1951') has been filed by the Petitioners and thereafter certain amendments have also been incorporated in the said application. Respondent No. 2 i.e. Registrar, Public Trust followed the unusual procedure by calling for a report from the Tahsildar and also from the Principal of JP Verma Government Arts and Commerce College, Bilaspur which is altogether irrelevant for the purpose of decision of application filed under Section 14 of the Act of 1951 and vide impugned order dated 05.08.2021, Respondent No. 2 the Registrar, Public Trust rejected the application filed by the Petitioners. Hence, the instan
